10 Years Later, the 3-Month Treasury Finally Yields 2% Again

via confoundedinterest:

(Bloomberg) — Short-end U.S. rates have been buoyed by a tightening of Federal Reserve policy and an increase in issuance, and the U.S. Treasury on Monday sold $51 billion of three-month bills at 2 percent, the highest rate for an auction of the tenor since June 2008. Three-month bills in the secondary market already cracked 2 percent earlier this month, but this is the first government auction to be sold at that rate in a decade and bidding from both direct and indirect buyers fell. The soft demand suggests investors preferred the six-month Treasury bill instead.

Yes, the US Treasury 3M bill rate finally is back 2.00%.

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It has taken over 10 years to get back to June 2008 rates.

2ytaux

But the entire US Treasury Actives curve is not back to where it once belonged.

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Get back, Jo Jo (Powell).

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